TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Stephanie Katsouleas, Public Works Director
Prem Kumar, City Engineer
Adilia Miller, Senior Civil Engineer
SUBJECT:Title
Consider: 1) Adopting Resolution 19-0117: Awarding a Construction Agreement to PALP, Inc. DBA Excel Paving Company for the Street Resurfacing Project - Cycle 1 for $1,329,859; Approving the Plans and Specifications for the Project; and Authorizing the City Manager to Approve Additional Work, if Necessary, for up to $164,903; 2) Adopting Resolution No. 19-0118 Awarding an Inspection Services Agreement to Quantum Quality Consulting, Inc. for the Project for $75,250; and 3) Appropriating $108,021 from the Gas Tax Fund Unreserved Fund Balance (Public Works Director Katsouleas).
a) ADOPT RESOLUTION NOS. 19-0117 AND 19-0118 APPROVING AGREEMENTS
b) APPROPRIATE FUNDS
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
1. Adopt Resolution No. 19-0117:
a. Awarding a construction agreement to Palp, Inc. DBA Excel Paving Company for the Street Resurfacing Project - Cycle 1 for $1,329,859 and authorizing the City Manager to execute the agreement;
b. Approving the Plans and Specifications for the Project; and
c. Authorizing the City Manager to approve additional work, if necessary, for up to $164,903 (12.4% of the agreement).
2. Adopt Resolution No. 19-0118 awarding an inspection services agreement to Quantum Quality Consulting, Inc. for the Project for $75,250 and authorizing the City Manager to execute the agreement.
3. Appropriate an additional $108,021 from the Gas Tax Fund Unreserved Fund Balance for the Project.
FISCAL IMPLICATIONS:
If City Council approves staff’s request to appropriate an additional $108,021 from the Gas Tax Unreserved Fund balance, then sufficient funds will be available to complete the project for a total of $1,570,012 using Gas Tax and Proposition C funds. The attached Budget and Expenditure report provides a summary of the detailed funding plan. Any unused funds will revert to the Gas Tax fund balance for future projects. The additional funding request of $108,021 is needed to complete Additive Bids A and C, which include two additional degraded street segments (see attached Location Map).
BACKGROUND:
The City is responsible for the repair and maintenance of over 100 linear street miles that vary in age and condition, and which require varying treatments in order to maintain them at high standards. Based on the 2018 Pavement Management Program Report’s Pavement Condition Index (PCI) rating, staff has prioritized several low-scoring street segments to be resurfaced over the next three budget years. Simply stated, these street segments are in the greatest need of attention, and staff has planned to utilize the most cost-effective methods available to preserve the life of the pavement for each segment.
City Council awarded a Professional Design Services agreement to Ardurra Group, Inc. (also known as AndersonPenna Partners, Inc.) on April 16, 2019, for the Cycle 1 Project for $160,983. The scope of work entailed the preparation of plans, technical specifications, cost estimates for appropriate resurfacing treatments for several street segments, the preparation of bidding documents, and design support services during the construction phase. Construction-related plans and specifications for the Cycle 1 Project were completed and put out to bid in the fall of 2019.
DISCUSSION:
Construction Bids
Base and Additive bids for the Cycle 1 Project (Bid No. 1213-20) were solicited on a competitive basis in accordance with the provisions of the California Public Contract Code. The project was advertised for bid in the City’s publisher of record (Beach Reporter), in several construction industry publications, and was listed on the City’s website and BidSync, an online service that connects vendors, suppliers, and contractors to government procurement opportunities. Staff also notified over 60 contractors on the City’s contractor database regarding this project.
A total of six competitive bids were received and opened on October 22, 2019. The bid documents determine the lowest bidder based on total bid price, which includes base bid items plus all additive alternate bid (schedule A+B+C) items. However, for this project, only the base bid and additive alternate bid schedule A and C will be awarded (which are listed below). The pavement resurfacing work in additive alternate bid schedule B will be delayed, and instead performed as part of the Cycle 1 Water Infrastructure Improvements Project anticipated to be awarded by City Council in spring 2020. The attached map identifies all of the street segments that will be addressed under this project.
The base bid plus additive bid schedule A and C results are as follows:
Contractor Total Base Bid Total Additive Total Price
Bids A&C
PALP, Inc. DBA Excel Paving Co. $1,101,382 $228,477 $1,329,859
Long Beach, CA
Sully-Miller Contracting Co. $1,256,840 $235,845 $1,492,685
Brea, CA
American Asphalt South, Inc., $1,329,909 $301,321 $1,631,230
Fontana, CA
Handy & Harper Inc. $1,080,891 $309,289 $1,390,180
Lake Forest, CA
(See Note 1 below)
Onyx Paving Company Inc. $1,162,340 $325,000 $1,487,340
Anaheim, CA
(See Note 2 below)
Sequel Contractors Inc. $1,173,600 $221,136 $1,394,736
Santa Fe Springs, CA
Correction notes on bids received:
Note 1: The bidder stated that the: 1) total based bid was $1,080,991, which was $100 more than the correctly added totals, and 2) total additive bid schedule C was $120,070, which was $1,416 more than the correctly added totals.
Note 2: The bidder stated that the total base bid was $1,160,000, which was $2,340 less than the actual unit price rates of the base bid multiplied by the stated quantities; the unit rate bid governs under the Public Contracting Code.
After analyzing all bid packets for arithmetical errors, completeness, accuracy, etc. PALP Inc. Excel Paving Company was deemed to be the apparent lowest bidder. It was noted that PALP Inc. DBA Excel Paving Company’s bid package (attached) contained one missing piece of documentation. It did not originally include evidence indicating the capacity of the person(s) signing the Bid to bind the Bidder. In consultation with the City Attorney’s Office, it was determined that the variance shown on PALP Inc. DBA Excel Paving Company’s bid packet and the subsequent submittal of the evidence indicating the capacity of the person(s) signing the Bid to bind the Bidder are both immaterial deviations for the purposes of considering its bid as responsive. Staff reviewed PALP Inc. DBA Excel Paving Company’s contractor license and found it to be in order. Additionally, references indicate PALP Inc. DBA Excel Paving Company has the knowledge and capability to complete the work in a timely and acceptable manner.
Inspection Services
The Public Works Department issued a Request for Proposals (RFP) on October 16, 2019, for construction inspection services for the project. The RFP was listed on the City’s website and BidSync, an online service that connects vendors, suppliers and contractors to government procurement opportunities. Nine proposals were received on November 5, 2019; they were evaluated and ranked by an evaluation committee of City staff according to the following selection criteria:
• Demonstrated understanding of the Scope of Services requested;
• Firm qualifications and experience performing similar work;
• Project management methods and quality control;
• Qualification and experience of key personnel;
• Qualifications and need for sub-consultants; and
• Timeliness/Schedule
Based on the selection criteria, Quantum Quality Consulting, Inc. had the best overall proposal at the best value. The firm has excellent experience on similar projects and the references contacted confirmed Quantum Quality Consulting, Inc. has provided outstanding services. The Proposal’s scope of work and methodology were clearly outlined, sufficient resources were identified to complete the project in a timely manner, and the staff is well qualified, having previously performed inspection services for many other municipalities.
Therefore, staff recommends that City Council: 1) authorize the City Manager to award a construction agreement to PALP Inc. DBA Excel Paving Company for $1,329,859 and approve additional work, if necessary, for up to $164,903; 2) award an Inspection Services Agreement to Quantum Quality Consulting, Inc. for $75,250; and 3) appropriate an additional $108,021 from the Gas Tax Fund Unreserved Fund Balance. Construction is anticipated to start in late January 2020, and be completed by June 2020.
PUBLIC OUTREACH:
On July 8, 2019, the Department of Public Works, Engineering Division sent a Public Notice notifying residents adjacent to the work about the commencement of the design phase of the Street Resurfacing Project, and the expected construction phase of the Cycle 1 Project. Following that notification, a public meeting was held on September 9, 2019, at 6:00 P.M. at Marine Avenue Park to review the design plans with the residents and answer any questions they had about the project. Additional notices will be sent to residents adjacent to the work once the project is ready to commence with construction.
ENVIROMENTAL REVIEW:
The City has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Categorical Exemption pursuant to Section 15301 Class 1 (repair and maintenance of existing public facilities, involving negligible or no expansion of use) of the State CEQA Guidelines. A Notice of Exemption was filed with the Los Angeles County Clerk’s Office for the Project.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 19-0117
2. Agreement - PALP Inc. DBA Excel Paving Company
3. Bid Proposal
4. Resolution No. 19-0118
5. Agreement - Quantum Quality Consulting, Inc.
6. Location Map
7. Plans and Specifications (Web-Link Provided)
8. Budget and Expenditures Summary